S&P puts Whole Foods on negative watch

Standard & Poor's said it placed Whole Foods Market Inc.'s BB+ subordinated debt rating and BBB- corporate credit rating on CreditWatch with negative implications following the company's announcement that it will acquire Wild Oats Markets, Inc. for about $565 million ($18.50 per share) and will assume Wild Oats Markets' existing debt of about $106 million.

The agency said it expects that a significant portion of the acquisition will be financed with additional debt, which may result in a material change in credit metrics.

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